Answer Key to Exercise Chapter 1

# Answer Key to Exercise Chapter 1 - SOLUTIONS TO BRIEF...

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Unformatted text preview: SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 1-1 (a) \$90,000 – \$50,000 = \$40,000 (Stockholders’ equity) (b) \$45,000 + \$85,000 = \$130,000 (Assets) (c) \$97,000 – \$62,000 = \$35,000 (Liabilities) BRIEF EXERCISE 1-2 1. \$90,000 + \$280,000 = \$370,000 (Total assets) 2. \$210,000 – \$90,000 = \$120,000 (Total liabilities) 3. \$900,000 – 0.5(\$900,000) = \$450,000 (Stockholders’ equity) BRIEF EXERCISE 1-3 1. (\$850,000 + \$150,000) – (\$500,000 – \$80,000) = \$580,000 (Stockholders’ equity) 2. (\$500,000 + \$100,000) + (\$850,000 – \$500,000 – \$50,000) = \$900,000 (Assets) 3. (\$850,000 – \$90,000) – (\$850,000 – \$500,000 + \$130,000) = \$280,000 (Liabilities) BRIEF EXERCISE 1-4 Assets Liabilities Stockholders’ Equity (a) (b) (c) + + – + NE NE NE + – BRIEF EXERCISE 1-5 Assets Liabilities Stockholders’ Equity (a) (b) (c) + – NE NE NE NE + – NE BRIEF EXERCISE 1-6 E (a) Advertising expense A (e) Cash R (b) Commission revenue R (f) Rent revenue E (c) Insurance expense E (g) Utilities expense A (d) Office equipment L (h) Accounts payable BRIEF EXERCISE 1-7 R (a) Received cash for services performed NSE (b) Paid cash to purchase equipment E (c) Paid employee salaries BRIEF EXERCISE 1-8 SAMANTHA COMPANY Balance Sheet December 31, 2002 Assets Cash ..........................................................................................................................\$ 40,500 Accounts receivable.................................................................................................................. 61,000 Total assets..................................................................................................................... \$101,500 Liabilities and Stockholders’ Equity Liabilities Accounts payable........................................................................................................... \$ 70,000 Stockholders’ equity Common stock............................................................................................................... 31,500 Total liabilities and stockholders’ equity.......................................................... \$101,500 BRIEF EXERCISE 1-9 A (a) Accounts receivable A (d) Office supplies L (b) Salaries payable SE (e) Common stock A (c) Equipment L (f) Notes payable BRIEF EXERCISE 1-10 BS (a) Notes payable BS (d) Cash IS (b) Advertising expense IS (e) Service revenue BS (c) Common stock SOLUTIONS TO EXERCISES EXERCISE 1-1 Asset Liability Stockholders’ Equity Cash Cleaning equipment Cleaning supplies Accounts receivable Accounts payable Notes payable Salaries payable Common stock EXERCISE 1-2 1. Increase in assets and increase in stockholders’ equity. 2. Decrease in assets and decrease in stockholders’ equity....
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## This note was uploaded on 01/25/2011 for the course AC 215 taught by Professor Don during the Winter '10 term at City University of Seattle.

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Answer Key to Exercise Chapter 1 - SOLUTIONS TO BRIEF...

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